With the reducing-balance formula above. Banks quote annual rates; the monthly rate is the annual rate divided by 12.
EMI Calculator
Calculate the EMI for a home, car or personal loan and see the full amortisation schedule: how each payment splits between interest and principal, the total interest you will pay, and how much a prepayment saves.
Monthly EMI
₹43,391.16
Total interest
₹54,13,879
Total payment
₹1,04,13,879
Loan closes in
20 yr
Year-wise amortisation
| Year | Principal paid | Interest paid | Prepaid | Outstanding |
|---|---|---|---|---|
| 1 | ₹99,511 | ₹4,21,182 | ₹0 | ₹49,00,489 |
| 2 | ₹1,08,307 | ₹4,12,387 | ₹0 | ₹47,92,181 |
| 3 | ₹1,17,881 | ₹4,02,813 | ₹0 | ₹46,74,300 |
| 4 | ₹1,28,300 | ₹3,92,394 | ₹0 | ₹45,46,000 |
| 5 | ₹1,39,641 | ₹3,81,053 | ₹0 | ₹44,06,359 |
| 6 | ₹1,51,984 | ₹3,68,710 | ₹0 | ₹42,54,375 |
| 7 | ₹1,65,418 | ₹3,55,276 | ₹0 | ₹40,88,957 |
| 8 | ₹1,80,039 | ₹3,40,655 | ₹0 | ₹39,08,918 |
| 9 | ₹1,95,953 | ₹3,24,741 | ₹0 | ₹37,12,965 |
| 10 | ₹2,13,274 | ₹3,07,420 | ₹0 | ₹34,99,691 |
| 11 | ₹2,32,125 | ₹2,88,569 | ₹0 | ₹32,67,566 |
| 12 | ₹2,52,643 | ₹2,68,051 | ₹0 | ₹30,14,923 |
Show all 20 rows
| 13 | ₹2,74,974 | ₹2,45,720 | ₹0 | ₹27,39,949 |
| 14 | ₹2,99,279 | ₹2,21,415 | ₹0 | ₹24,40,670 |
| 15 | ₹3,25,733 | ₹1,94,961 | ₹0 | ₹21,14,937 |
| 16 | ₹3,54,525 | ₹1,66,169 | ₹0 | ₹17,60,412 |
| 17 | ₹3,85,862 | ₹1,34,832 | ₹0 | ₹13,74,550 |
| 18 | ₹4,19,968 | ₹1,00,726 | ₹0 | ₹9,54,582 |
| 19 | ₹4,57,090 | ₹63,604 | ₹0 | ₹4,97,492 |
| 20 | ₹4,97,492 | ₹23,202 | ₹0 | ₹0 |
- Reducing-balance method with monthly rests, the standard for Indian bank loans. Processing fees and insurance are not included.
How the EMI Calculator works
An EMI is a fixed monthly payment that covers that month's interest on the outstanding balance plus some principal. Early on most of the EMI is interest; as the balance falls, more of each payment goes to principal.
Prepaying reduces the balance directly, so every later month charges less interest. Keeping the EMI unchanged and shortening the tenure saves the most interest; reducing the EMI eases cash flow instead.
EMI = P × r × (1+r)^n ÷ [ (1+r)^n − 1 ]
- P
- loan amount
- r
- monthly rate = annual ÷ 12 ÷ 100
- n
- tenure in months
Worked example
- Loan type: Home
- Loan amount: ₹50,00,000
- Interest rate (p.a.): 8.5%
- Tenure: 20 Yr
A ₹50 lakh home loan at 8.5% for 20 years has an EMI of ₹43,391. Over the full term you pay about ₹54 lakh in interest — more than the loan itself. A single ₹5 lakh prepayment after year 2 with the EMI unchanged cuts roughly 3 years and ₹12 lakh of interest.